First Citizens Bank & Trust Co. Buys 1,362 Shares of Lumentum Holdings Inc. $LITE

Key Points

• First Citizens Bank & Trust Co. bought 1,362 Lumentum shares worth approximately $1.32 million during the third quarter. Institutional investors collectively own 94.05% of Lumentum’s stock.
• Analysts maintain a generally positive outlook, with a consensus rating of “Moderate Buy” and an average price target of $1,078.75; 16 analysts rate the shares Buy, six Hold, and one Sell.
• Lumentum exceeded quarterly expectations, reporting adjusted earnings of $3.23 per share and revenue of $1.01 billion, with revenue up 109.3% year over year. However, insiders have sold $86.0 million of stock over the past three months, including sales conducted under pre-arranged plans.

First Citizens Bank & Trust Co. bought a new position in Lumentum Holdings Inc. (NASDAQ:LITE - Free Report) during the third quarter, according to the company in its most recent filing with the SEC. The firm bought 1,362 shares of the technology company's stock, valued at approximately $1,323,000.

Several other hedge funds have also added to or reduced their stakes in LITE. Hilton Head Capital Partners LLC bought a new position in shares of Lumentum during the first quarter valued at about $25,000. Sachetta LLC increased its holdings in shares of Lumentum by 118.8% in the first quarter. Sachetta LLC now owns 35 shares of the technology company's stock worth $25,000 after buying an additional 19 shares during the period. Burkett Financial Services LLC purchased a new position in shares of Lumentum in the third quarter worth about $28,000. Meeder Asset Management Inc. bought a new stake in shares of Lumentum in the 2nd quarter valued at about $40,000. Finally, Keating Financial Advisory Services Inc. bought a new stake in shares of Lumentum in the 2nd quarter valued at about $41,000. 94.05% of the stock is owned by institutional investors.

Analysts Set New Price Targets

Several equities research analysts recently weighed in on LITE shares. Needham & Company LLC restated a "buy" rating and set a $1,040.00 target price on shares of Lumentum in a report on Wednesday, August 12th. Wolfe Research reaffirmed an "outperform" rating on shares of Lumentum in a research note on Friday, August 21st. Morgan Stanley boosted their price objective on Lumentum from $900.00 to $1,000.00 and gave the company an "equal weight" rating in a research report on Wednesday, August 12th. TD Cowen boosted their price objective on Lumentum from $800.00 to $820.00 and gave the company a "hold" rating in a research report on Wednesday, August 12th. Finally, Bank of America dropped their price objective on Lumentum from $1,100.00 to $1,000.00 and set a "neutral" rating for the company in a research note on Wednesday, August 12th. Sixteen equities research analysts have rated the stock with a Buy rating, six have assigned a Hold rating and one has given a Sell rating to the company. According to data from MarketBeat, the company currently has a consensus rating of "Moderate Buy" and a consensus price target of $1,078.75.

Key Lumentum News

Here are the key news stories impacting Lumentum this week:

• Positive Sentiment: Analyst price targets remain above the current share price. A survey of 23 analysts produced an average target of $1,078.75, implying substantial potential upside, while Stifel raised its target from $1,100 to $1,232. These targets indicate that some analysts still expect strong demand for Lumentum’s photonics and optical components. 23 analysts set USD 1,078.75 target for Lumentum stock Stifel raised target for Lumentum stock
• Positive Sentiment: The long-term AI investment case remains intact. Investor commentary highlights Lumentum’s transformation from a cyclical smartphone laser supplier into a key provider of optical technology for AI infrastructure. Its recent earnings growth and stronger order book support the longer-term bullish thesis, although the article does not provide a new near-term catalyst. The Long-Term Investment Case for Lumentum
• Neutral Sentiment: Sector sentiment is deteriorating. Optical suppliers, including Lumentum, Coherent, and Applied Optoelectronics, are falling together as money rotates toward defensive sectors and investors question how quickly AI data-center projects will be funded. This appears to be a valuation and sentiment-driven pullback across the group. Optical Stocks Extend Slide as Money Rotates Into Defensives
• Negative Sentiment: Zacks downgraded LITE from Strong Buy to Hold. The less bullish recommendation is weighing on the stock, particularly after its substantial rally and amid broader concerns about AI infrastructure spending. Zacks downgrades Lumentum to Hold

Insider Buying and Selling at Lumentum

In other Lumentum news, SVP Jae Kim sold 12,000 shares of the stock in a transaction that occurred on Tuesday, August 25th. The stock was sold at an average price of $852.58, for a total value of $10,230,960.00. Following the completion of the sale, the senior vice president owned 37,804 shares in the company, valued at approximately $32,230,934.32. This trade represents a 24.09% decrease in their position. The transaction was disclosed in a filing with the SEC, which can be accessed through the SEC website. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, insider Yuen Wupen sold 1,500 shares of Lumentum stock in a transaction that occurred on Thursday, August 20th. The stock was sold at an average price of $827.82, for a total value of $1,241,730.00. Following the completion of the sale, the insider owned 100,434 shares in the company, valued at approximately $83,141,273.88. This represents a 1.47% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. The sale was made to cover tax withholding obligations related to the vesting of equity awards. Insiders have sold a total of 94,496 shares of company stock worth $85,978,498 over the last three months. 0.28% of the stock is owned by corporate insiders.

Lumentum Price Performance

LITE stock opened at $869.54 on Friday. The stock has a market capitalization of $78.76 billion, a price-to-earnings ratio of -10.58 and a beta of 1.53. The firm's 50-day moving average price is $932.80 and its two-hundred day moving average price is $876.43. The company has a current ratio of 1.68, a quick ratio of 1.40 and a debt-to-equity ratio of 0.01. Lumentum Holdings Inc. has a 12-month low of $152.54 and a 12-month high of $1,143.00.

Lumentum (NASDAQ:LITE - Get Free Report) last posted its earnings results on Tuesday, August 11th. The technology company reported $3.23 earnings per share for the quarter, topping analysts' consensus estimates of $2.97 by $0.26. The company had revenue of $1.01 billion during the quarter, compared to analyst estimates of $987.70 million. Lumentum had a negative net margin of 230.15% and a positive return on equity of 26.34%. Lumentum's revenue for the quarter was up 109.3% on a year-over-year basis. During the same period in the prior year, the business posted $0.88 earnings per share. Lumentum has set its Q1 2027 guidance at 4.050-4.350 EPS. As a group, equities analysts predict that Lumentum Holdings Inc. will post 19.79 earnings per share for the current year.

Lumentum Company Profile

Lumentum Holdings Inc is a photonics and optical technology company that develops and manufactures products used to transmit, process and manage light. Its solutions support communications networks, data centers, cloud computing infrastructure, industrial applications, and other technology markets that rely on high-speed optical connectivity and precision lasers.

The company's product portfolio includes optical components and modules for telecommunications and networking, lasers and laser systems, optical amplifiers, wavelength-management products, and photonic subsystems.

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